Multiple Choice - Assessment

1.

Multiple Choice

15 mins

1 pt

Which of the following statements is correct?

I. The fringe benefit tax is a final withholding tax on the grossed-up monetary value of the fringe benefit granted by the employer to an employee who holds a managerial or supervisory position.

II. Fringe benefit tax is effective regardless of whether the employer is an individual, professional partnership, or a corporation (regardless of whether the corporation is taxable or not).

III. The fringe benefit tax regulations cover only those fringe benefits given or furnished to managerial or supervisory employees. The regulations do not cover those benefits which are part of compensation income, because these are subject to creditable withholding tax on compensation in accordance with RR No.2-98, as amended.

I only

I and II only

I, II and III

None of the above

2.

Multiple Choice

15 mins

1 pt

1. Statement 1: Fringe benefits are forms of incentives to employees.

Statement 2: Fringe benefits include salaries, services, or other benefit given by employer to an individual employee.

Only statement 1 is correct

Only statement 2 is correct

Both statements are correct

Both statements are not correct

3.

Multiple Choice

15 mins

1 pt

Both statements are not correct

Fringe benefit tax is imposed on the employee

The employer is the one liable for the payment of fringe benefit tax

Both “a” and “b”

Neither “a” nor “b”

4.

Multiple Choice

15 mins

1 pt

This income of a resident alien holding managerial position is subject to basic tax.

Fringe benefit tax

Interest income from Philippine currency deposit with Security Bank

Prizes from S&R (10,000), Gateway (P10,000), and Glorieta (P10,000) or a total of P30,000

5.

Multiple Choice

15 mins

1 pt

Which of the following is a fringe benefit not covered by the fringe benefit tax?

De minimis benefit

Housing privileges granted to rank and file employees.

Fringe benefits granted as a result of the nature of the business, trade, or profession of the employer.

All of these.

6.

Multiple Choice

15 mins

1 pt

The following earnings are subject to fringe benefit tax, except

Salary of a rank and file employee.

Housing necessary for trade and for the convenience of the employer.

All of the above.

7.

Multiple Choice

15 mins

1 pt

The following are exempt fringe benefits, except for one

Fringe benefit given to rank and file employee.

Fringe benefit given for the convenience of the employee.

When the fringe benefit is required by the nature of or necessary to the trade, business or profession of the employer.

Rice benefit amounting to P1,500 a month.

8.

Multiple Choice

15 mins

1 pt

Which of the following benefits is not subject to the fringe benefits tax?

Contributions of the employer for the benefit of the employee to retirement, insurance and hospitalization benefit plans.

Housing

Expense account

Vehicle of any kind

9.

Multiple Choice

15 mins

1 pt

Statement 1: Household of the employee borne by the employer such as salaries of household help, personal driver and other similar personal expenses are taxable fringe benefits.

Statement 2: a fringe benefit which is not subject to the fringe benefit tax is returnable income of the employee.

Statements 1 and 2 are false

Statement 1 is true but statement 2 is false

Statement 1 is false but statement 2 is true

Statement 1 and 2 are true.

10.

Multiple Choice

15 mins

1 pt

Fringe benefit tax is computed based on the

Monetary value if the fringe benefit

Book value of the fringe benefit

Grossed-up monetary value of the fringe benefit

Fair value of the fringe benefit

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